Usdchf rises as market awaits key us economic data

USDCHF Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.12%	10.2 Pips
Week to-date	-0.66%	-56.4 Pips
April	-4.29%	-379.1 Pips

Upcoming key events (London Time)

Wed 07:00 PM USD FOMC Meeting Minutes
Thu 01:30 PM USD CPI Inflation Rate (12-mth)

What happened lately

The United States is set for several significant economic events, poised to potentially impact markets. The FOMC Meeting Minutes, scheduled for release on Wednesday at 07:00 PM, will offer insights into the Federal Reserve’s thinking regarding monetary policy. This release is highly anticipated as it may reveal the central bank’s stance on interest rates, which could influence the USD’s performance. Moreover, on Thursday at 01:30 PM, the Consumer Price Index (CPI) will be released, providing a measure of inflation over a 12-month period. Inflation data is critical as it can dictate the Federal Reserve’s policy direction. Higher-than-expected inflation may lead to tighter monetary policy, while lower figures could suggest a continuation of current policy. Both events are categorized as high impact and are crucial for investors eyeing the USD market and broader economic implications.

The USDCHF pair has experienced a minor increase of 0.12% to 0.85970, indicating a period of consolidation. Looking ahead, the upcoming US economic data releases could sway the USDCHF exchange rate. Should the FOMC Meeting Minutes hint at a hawkish stance, signaling potential interest rate hikes, the USD could strengthen, leading to a rise in the USDCHF pair. Conversely, a dovish tone might lead to a depreciation of the USD, possibly pushing the USDCHF lower. Additionally, the CPI inflation rate will be a key driver; higher inflation could boost the USD if traders anticipate a more aggressive tightening policy. Conversely, if inflation is below expectations, the USD might weaken. Overall, these events will provide critical direction for the USDCHF pair in the short term, as traders adjust to new economic signals and policy expectations.

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What can we expect from USDCHF today?

USDCHF on Tuesday rose 0.12% to 0.85970. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for USDCHF looks mixed as the pair is likely to consolidate above 0.8585 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.86043 or trades above daily pivot 0.85946. Break above could target R1 at 0.86067. While to the downside, we are looking at 0.8585 (S1) and daily low of 0.85826 as support levels. USDCHF need to break on either side to indicate a short-term bias. A break above 0.86043 may suggest continuation after recent positive movement.

For the week to-date, take note that USDCHF is mixed as compared to the prior week.

Key levels to watch out:

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